[WSBAPT] bypass trust as contingent beneficiary

[Diane Kiepe]

In my opinion this is not necessarily the best approach from a tax planning
and estate administration perspective, but it is one way to consider.  I'd
be happy to speak with you about why, as it's a bit complicated.  It would
need to be after traditional business hours.  Generally though, one
conversation you might want to have is whether it makes sense to use all or
some of the WA estate tax exemption by naming a non-spouse (but child or
children) as a beneficiary for a portion of retirement plans.  Another
discussion, depending on their age, is to have them visit with their
advisor about a ROTH conversion for some of their retirement plans and then
use the ROTH DOLLARS.  Lastly, for now, given an estate of this size, they
need to consider lifetime gifting and possibly life insurance.  I am not an
advisor, but I share an office with my son who is a Chartered Financial
Advisor and CPA. In my 22+ years, I have worked so closely with advisors
that you learn a few tricks of the trade to consider.

Forgive me if I overanswered; perhaps you only needed the language
commented on.  To that end, DO NOT name a living trust.  Bypass or Family
trust is acceptable, but then you need to ensure you have appropriate
payout language so the surviving spouse has some flexibility.  Lastly, I
would add a third selection of individuals so the surviving spouse could
consider a double disclaimer.  Disclaim as spouse and then as Trustee if it
makes sense.



Diane Kiepe
Kiepe Estate and Probate, PLLC
diane at kiepelaw.com
200 N. Mullan Rd., Suite 203
Spokane Valley, WA  99206
509-808-2087
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On Mon, Jul 27, 2026 at 10:18 AM Jenna Brozik <Jenna at prinzandbrozik.com>
wrote:

> Hello list mates,
>
>
>
> My clients have executed a joint Living Trust.  They are a married
> couple.  Most if not all of their assets are in their retirement accounts,
> approximately 6-7 million.
>
>
>
> In the Living Trust, there is an option to disclaim assets for the
> surviving spouse when the first spouse passes away. Most likely the
> surviving spouse will disclaim part of the estate to try to avoid estate
> taxes.
>
>
>
> In this situation, is the best option that they should name each other as
> primary beneficiaries on their retirement account first, and then name “The
> Decedent’s Trust of the ______Living Trust” or “Bypass trust of the
> ____Living Trust” as the contingent beneficiary?  Or should it be their
> Living Trust as contingent beneficiary? If the surviving spouse disclaims
> the retirement, it will go to the contingent beneficiary.
>
>
>
> Thanks,
>
>
>
> Jenna Brozik
>
> *Managing Attorney*
>
> *PRINZ & BROZIK PLLC*
> 445 S. Grand Avenue
> Pullman, WA 99163
> 509-338-0908 Telephone
> 509-338-3527 Facsimile
>
>
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